Title

Attorney General No.

SA87RF0022

Secretary of State No.

410

Description

DISABILITY BENEFITS. CONSTITUTIONAL AMENDMENT. Provides an injured worker with disability benefits equal to 2/3 of the workers' gross wage (up to specified maximum) and with family medical insurance. Requires annual benefit adjustment. Benefits awarded provided during appeals process. Prohibits benefit termination except by return to suitable employment, parties' agreement, or order of workers' compensation judge after hearing. Requires hearing within 30 days of request and decision within 30 days of submission. Provides funding for Division of Industrial Accidents and Workers' Compensation Appeals Board from 1% surcharge on the workers' compensation insurance premium or self insurance. Contains other provisions. Summary of estimate by Legislative Analyst and Director of Finance of fiscal impact on state and local governments: 1. Increased state cost for state workers' compensation benefits of $10 million to $100 million annually. Increased costs to local governments of three to four times those of state. 2. In short run, a multi-million dollar net decrease in state General Fund revenues due to loss of tax revenues. Long term effect unknown. 3. State General Fund savings of approximately $45 million annually resulting from transfer of costs of hearings to a new surcharge on workers' compensation insurance premiums. Surcharge will generate approximately $75 million annually to cover cost of hearings ($45 million) plus other costs.